Page 196 - Motor Insurance Ebook IC 72
P. 196
The Insurance Times
Q.1. Discuss the importance of various documents used
Ans. for Motor Insurance.
Various documents used for Motor Insurance with
their use and importance is enumerated as under:
(i) Proposal Form- Proposal Form is compulsory in
Motor Insurance. The information/particulars given
by the insured in the Proposal Form form the basis
for the insurance contract.
The Declaration Clause in the form converts the
common law duty into a contractual duty of utmost
good faith. The effect of this is that the answers
given in the proposal become warranties.
(ii) Cover Note - Cover Note is issued pending issuance
of policy. It is unstamped document. The cover note
is to be issued in the prescribed form and it is valid
for a period of 15 days and can be extended up to
two months.
(iii) Certificate of Insurance - The Certificate of
Insurance is an evidence that a motor vehicle is
insured against third party liability as required by
the Motor Vehicles Act. The Certificate is to be
issued as per the form prescribed in the Act.
(iv) The Policy - The Policy is a stamped document
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